LA HABRA : Investment Pool Settlement Accepted
City Council members have voted unanimously to accept a settlement that will allow them to recover most of the city’s money from Orange County’s collapsed investment pool.
County officials last month offered cities and school districts a choice between two options for retrieving their investments from the county pool. Option A would return the city about 76% of its investment in cash, 4% in so-called “recovery notes,” and the rest in less certain guarantees. Under Option B, investors would receive only the cash payment but would retain the right to sue for the rest.
The investors also had the option to reject the deal. For the settlement to go through, 80% of the investors with 90% of the money in the pool must accept either of the two options.
On Monday, the council chose Option A, which will give the city about $6.3 million in cash and $295,849 in recovery notes the county promises to cash by June 5.
“I think (Option A) is as good as can be done at this point,” City Manager Lee Risner said.
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